CASINO

Genting Singapore profit spikes thanks to tighter VIP lending

TAGs: Genting Singapore, Resorts World Sentosa, Singapore

genting-singapore-resorts-world-sentosaCasino operator Genting Singapore reported its third quarter profits up more than one-third after exerting more control over its VIP gambling policies.

Figures released Monday show Genting Singapore’s revenue hitting just under S$630m (US $462.5m) in the three months ending September 30, 8% higher than the same period last year. Operating profit rose 24% to S$226m while net profit attributable to shareholders shot up 35% to S$143.8m.

The company, which operates the Resorts World Sentosa integrated resort, reported gaming revenue rising 11% to S$452m, while non-gaming revenue gained 2% to S$177.1m. The company credited “stronger VIP and premium mass volume” for the gains, along with “strong” growth in its mass market electronic gaming machine business.

The VIP segment’s “respectable” gains were coupled with an “acceptable” bad debt provision ratio, thanks to “a more measured credit policy.” Genting Singapore was notorious for writing off huge sums in bad VIP gambling debts before the company tightened its lending policies. In August, the company restated its commitment to lessening its reliance on the VIP sector.

The company didn’t break out specific figures for its VIP, premium mass and mass market revenues. But the Sanford C Bernstein brokerage issued a note on Friday in which it projected FY17 VIP revenue of S$762m, mass table revenue of S$914m and slots revenue of S$579m.

The combined revenue estimate would total S$2.26b, only about 1% higher than the property reported in FY16. Genting Singapore’s official revenue total through the first nine months of 2017 show revenue up 9% year-on-year to S$1.81b, although this sum was goosed by the S$96.3m earned via the company’s sale of its stake in a South Korean casino joint venture with Landing International Development.

This week also saw the Singapore Tourism Board (STB) issue its tourism sector performance report for the first half of the year. From January to June 2017, international visitor arrivals gained 4% to 8.5m, while tourism receipts improved 10% to S$12.7b. Of this, the ‘sightseeing, entertainment & gaming’ division reported revenue up 2% to S$2.2b.

China remains Singapore’s top provider of international guests, with over 1.55m visitors (+5%) in the first half of 2017. Indonesia was a close second with 1.47m (+4%), with the top-five rounded out by India (660k, +15%), Malaysia (562k, +2%) and Australia (523k, +6%).

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com